The latest Buy-to-Let Index from LendInvest has revealed the top areas for rental yield growth over the year between August 2015 and July 2016.
Specifically, the Index focuses on postcode areas in England and Wales, looking where average yields have increased the most over the period.
Blackburn came out on top spot, with average rental yields in the town rising from 4.13% to 5.69%- an increase of 37.8%. In addition, Blackburn is the cheapest area in the top ten regions for property buyers. Average house prices in the region currently stand at £95,000.
Carlisle came a close second, with rental yields spiralling by 36.5%. Gloucester came in third, with an increase of 19.4% in rental yields over the twelve months.
At the other end of the scale, Durham was found to be the worst region for rental yield growth. Here, returns have slipped by 34.2% in the year, from 7.09% to 4.67%. Durham was closely followed by Chester and Croydon.
Christian Faes, Co-Founder and CEO of LendInvest, noted: ‘savvy property investors won’t only look out for which areas will offer the best returns right now, but are considering the best growth for the months and years to come. That means spotting areas which will become more popular in the future. That may be due to improved transport links, for example those towns which are due to be on the new HS2 line, or those which are due to benefit from new infrastructure projects, which will bring additional employment into the region.’